May 7, 2023 | Investopaper
As per the statistics of Nepal Insurance Authority, about 44.55 percent of the population has access to insurance until the end of Chaitra, 2079 BS. This statistic also includes insurance for those who have gone for foreign employment. However, as one person can have more than one insurance, just like deposit accounts in banks and financial institutions, it doesn’t reflect the true picture.
Despite the increase in insurance penetration, about 55 percent of the total population of the country still does not have access to insurance. Due to a lack of insurance awareness among many citizens, companies are confined to cities and affluent areas and large sections of the population are still deprived of insurance services.
Nepalis who have gone for foreign employment must have insurance. Insurance access data excludes insurance for those who have gone for foreign employment. With the removal of such insurance figures, only 39.74 percent of the total population has access to insurance till Chaitra.
At present, there are 17 life insurance companies, 16 non-life insurance companies, and 2 reinsurance companies operating in Nepal. Various insurance companies have been providing insurance services across the country through 3154 branch offices. As of Chaitra, 2079 BS, life insurance companies have issued a total of 1,41,65,992 insurance policies. During the same period, non-life insurance companies have issued 21,66,328 insurance policies.
Until the end of Chaitra 2079 BS, insurance companies (life and non-life) have collected a total of 134 billion rupees in insurance premium. This is 2.67 percent higher than the same period of the previous fiscal year.
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